YES Bank Receives ₹345 Crore Income Tax Refund Following Appellate Authority Orders
YES Bank has received an income tax refund of approximately ₹345 crores including interest following favorable orders from appellate authorities. The refund resolves a tax dispute dating back to assessment year 2016-17 that involved multiple proceedings including assessment, reassessment, and rectification orders. The amount exceeds materiality thresholds and will positively impact the bank's profit and loss statement.
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Yes Bank has received a substantial income tax refund of approximately ₹345 crores, including interest, following the resolution of a multi-year tax dispute through appellate proceedings. The refund, which exceeds the materiality threshold under amended listing regulations, will have a positive impact on the bank's profit and loss statement.
Tax Dispute Timeline and Resolution
The tax matter originated from an assessment order received by the bank in December 2018 for assessment year 2016-17, wherein certain additions and disallowances were made by the tax authorities. The case subsequently underwent reassessment proceedings, with a reassessment order passed under section 147 in March 2022.
A critical error occurred during the reassessment process when the order considered the income reported in the return of income instead of the assessed income for computing the reassessed income and tax thereon. To rectify this mistake, the Jurisdictional Assessing Officer (JAO) passed a rectification order on April 15, 2025, recomputing the tax demand. The bank had made appropriate stock exchange disclosures regarding this development on April 16, 2025.
Appellate Authority Proceedings
YES Bank had filed appeals against multiple orders before the first level appellate authority, challenging the assessment order, reassessment order, and rectification order. The appellate proceedings culminated in favorable orders for the bank.
On December 31, 2025, the bank received a consolidated Order Giving Effect (OGE) from the JAO, implementing the directions of the appellate authority. The computation statement in this order determined the income tax refund amount.
Financial Impact Details
| Parameter: | Details |
|---|---|
| Refund Amount: | ₹345.00 crores (approximately) |
| Interest Component: | Included under Section 244A |
| Assessment Year: | 2016-17 |
| Order Date: | December 31, 2025 |
| Materiality Status: | Exceeds prescribed threshold |
Regulatory Compliance and Disclosure
The bank has fulfilled its disclosure obligations under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The refund amount to be recognized in the profit and loss statement exceeds the materiality threshold as prescribed under the amended listing regulations.
In compliance with Regulation 46 of the listing regulations, the information has been hosted on the bank's official website at www.yes.bank.in . The disclosure includes comprehensive details of the litigation proceedings, expected financial implications, and quantum of claims as required under regulatory frameworks.
Case Background Summary
The dispute involved complex reassessment proceedings where computational errors in the original reassessment order led to subsequent rectification measures. The bank's persistent appeal efforts through proper legal channels ultimately resulted in this favorable outcome, demonstrating the importance of challenging incorrect tax assessments through appropriate appellate mechanisms.
Historical Stock Returns for Yes Bank
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.51% | -0.92% | -6.28% | +5.65% | +9.70% | +20.39% |
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